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Annex 4.1 Current status of projects under the Netbilling Law and PMGD projects

Distributed generation in its various scales has been widely accepted in the Chilean electricity sector, both the generation received under the Netbilling Law and the PMGD have grown substantially since their connection and remuneration were regulated.

4.1.1 Progress in the number of connections and installed capacity of generation projects covered by the Netbilling Law

The Netbilling Law in Chile began to operate effectively from October 2014 so it is a very new regulation. However, already in February of 2015 it had begun the commissioning of the first projects covered by this Law and its increase has not ceased. The requests for connection to the distribution companies started the same month of publication of the regulation. Likewise, the number of registered installations has increased considerably during these years, reaching a total of 6674 installations in the month of December 2020.

Figure 4 shows declarations of commissioning of the projects from the beginning of the validity of the Netbilling Law until December 2020.

Figure 4: Installations declared in compliance with the Netbilling Law

Source: SEC

Figure 5 shows the distribution of facilities according to their power range both in quantity and their contribution to the total capacity December 2020.

Figure 5: Distributed generation projects by size and contribution of power of each segment 

Source: SEC.

4.1.2 PMGD project number progress

A decade ago there was a significant development of typically hydraulic and diesel PMGD projects, but for 5 years there has been a growing development of wind and solar projects and are projected to continue with this trend. Figure 6 presents the evolution of the number of PMGD projects by technology.

Figure 6: Evolution of PMGD projects by technology

Source: SEC.

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